Constellation Brands Inc.
) touched a new 52-week high of $58.32 on Sep 10, and eventually
closed trade at $58.24. The stock has been performing well on the
back of efficient brand building and execution of inorganic
growth initiatives. This specialty retailer has amassed a
year-to-date return of 55.1%.
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The average volume of shares traded over the last 3 months was
approximately 1,663.9K. Moreover, the company currently trades at
a forward P/E of 20.60x, a 5.5% discount to the peer group
average of 21.79x. The last traded price is 8.1% below the Zacks
Consensus average analyst price target of $63.40.
Additionally, the company's long-term estimated earnings per
share (EPS) growth rate is 14.4%. Constellation Brands now
carries a Zacks Rank #2 (Buy).
Constellation Brands' sustained focus on brand building as well
as initiatives to introduce new products in its wine and spirits
business are the major factors that led to the stock's price
appreciation. Owing to its strategic endeavors, the company is
witnessing strong depletion trends and increasing market share in
the U.S. wine and spirits category. Moreover, Constellation
Brands is enhancing its points of distribution in retail and is
effectively executing strategic merchandising initiatives to
The company's strategic initiatives to strengthen its foothold in
the U.S. wine industry and efforts to increase its portfolio of
brands are driving growth. This is well evident from the
company's recent acquisition of Grupo Modelo SAB de C.V.'s U.S.
beer business from Anheuser-Busch InBev.
Considering the positive impact from the recent acquisition of
Grupo Modelo, management raised its earnings guidance for fiscal
2014 to $2.60-$2.90 per share from $2.55-$2.85 projected earlier.
Going forward, the company aims to enhance the distribution of
the brand in order to drive incremental profits.
Apart from Constellation Brands, other stocks such as
Boston Beer Co. Inc.
) achieved new 52-week highs of $229.33, $132.40 and $26.60,